In Short
- Paytm shares dropped nearly 7% in early trade.
- Shares trading 5.86% lower on NSE at Rs 467.15.
- Paytm working to resolve ongoing crisis after RBI’s regulatory action
Shares of embattled digital payments firm Paytm fell nearly 7 per cent in early trade after witnessing a strong rebound in the past two sessions.
Paytm shares hit a day’s low of Rs 450 after opening and were trading 5.86 per cent lower on the National Stock Exchange (NSE) at Rs 467.15 at 9:33 am.
While analysts expected Paytm shares to recover further after its CEO Vijay Shekhar Sharma met with RBI officials and Finance Minister Nirmala Sitharaman to resolve the ongoing crisis, a fresh media report has made Dalal Street investors wary.
BI officials and Finance Minister Nirmala Sitharaman to resolve the ongoing crisis, a fresh media report has made Dalal Street investors wary.
s per the report, India’s largest securities depository, CDSL, is reviewing the KYC process followed by Paytm Money, which offers wealth management and investment services and is a subsidiary of Paytm.
While the report could not be independently confirmed by IndiaToday.in, it seems to be the main trigger behind the sharp fall in Paytm’s share price in early trade.
However, analysts feel that there is potential for the Paytm stock to gain if the company succeeds in ensuring no service disruption after February 29. It may be noted that the RBI has asked Paytm Payments Bank, an associate of Paytm, to stop key services from March 1.
Paytm said it is working with third-party banks to move its Wallet services and ensure that its vast user base does not face any service disruption.
“Ensuring that user deposits in savings accounts, wallets, FASTags, and NCMC accounts remain unaffected provides a substantial foundation for investor confidence,” said Nilesh Tribhuvann, Founder and Managing Partner of White & Brief, Advocates & Solicitors.
“Our legal analysis indicates that while challenges may arise, Paytm’s collaboration with other banks ensures service continuity. Investors should recognise the resilience of Paytm in navigating regulatory dynamics,” he added.
